Energy Drink Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| CAGR | 8.51 % |
| Fastest Growing Market | South America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Energy Drink Market Analysis
- The energy drinks market size is expected to grow from USD 60.78 billion for the current years and is projected to register a CAGR of 8.51% over the next five years.
- The primary factor behind the significant market growth is the rise in consumption of soft drinks worldwide. A survey by The Federal Statistical Office shows that the annual average per capita consumption of soft drinks in Germany increased from 114.7 liters in 2020 to 118.4 liters in 2021. Apart from this, rapid urbanization, improving disposable incomes, and busy lifestyles of individuals are other major factors boosting market growth. Moreover, with the growing health consciousness among individuals, non-alcoholic beverages are gaining immense traction worldwide, propelling market growth.
- According to UN Comtrade statistics, the amount of non-alcoholic beverages imported to Hungary peaked in 2022 at 174 million euros from 154 million euros in 2021. Furthermore, the increasing participation of individuals in professional sports, recreational outdoor activities, and exercise and physical fitness is creating demand for dietary supplements, such as energy drinks. Energy drinks are functional beverages that help increase energy and enhance mental alertness and physical performance.
- Leading players are further focusing on developing sugar-free drinks to cater to the needs of individuals with diabetes and other chronic illnesses. For instance, in 2022, an Australian soft drinks company, Nexba, launched a range of caffeine- and sugar-free energy drinks with added vitamins and prebiotics. Nexba Natural Energy drinks are free from artificial ingredients and available in two flavors: Lemon & Yuzu and Wild Citrus. The company claims the flavors contain ginseng extract, vitamin B complex, and vitamin C to improve gut health and enhance energy levels. Therefore, the abovementioned factors will likely influence the market positively during the study period.
Energy Drink Industry Segmentation
An energy drink generally contains stimulants, such as caffeine, to provide an energy boost to improve physical and cognitive performance. It can also be carbonated and contain sweeteners, herbal extracts, taurine, and amino acids.
The market studied is segmented by product type, packaging type, distribution channel, and geography. By product type, the market is segmented into shots and drinks. By packaging type, the market is segmented into bottles and cans. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | |
| Shots | |
| Drinks |
| Packaging Type | |
| Bottles (PET/GLASS) | |
| Cans |
| Distribution Channel | |
| Supermarkets/Hypermarkets | |
| Convenience Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
| Geography | |||||||||
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Energy Drink Market Trends
Consumers Seeking Healthier Alternatives to Alcoholic and Sugary Beverages
- Alcohol consumption is among the top risk factors for disease globally. According to World Health Organization (WHO), the harmful use of alcohol is a causal factor in more than 200 disease and injury conditions. It causes over 3 million deaths yearly, representing 5.3% of all deaths. Furthermore, a survey published by The National Center for Health Statistics revealed that the death rate from alcohol abuse in the United States increased from 13.1 to 14.4 deaths per 100,000 population from 2020 to 2021. Therefore, there has been a rise in the demand for healthier alternatives to traditional alcoholic beverages to reduce alcohol dependence. This acts as the leading factor driving the market for energy drinks worldwide.
- Apart from this, with the increasing prevalence of diabetes and other chronic illnesses, consumers are becoming more conscious of their diet and incorporating healthy eating habits into their daily routines. Moreover, key players are capitalizing on customers’ demand for lower sugar options to expand their consumer base. For instance, in 2023, Rockstar Energy expanded its product portfolio by launching two refreshing, zero-sugar flavors, namely Rockstar Refresh Strawberry & Lime and Watermelon & Kiwi. The company claims the flavors provide delicious, refreshing flavors with a crisp finish, high in vitamin C, zero sugar, and only 21 calories per can. Such factors are anticipated to provide a thrust to the market in the future.
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North America Dominates the Market
- The major constituent in most energy drinks is caffeine. According to the United States Association, about 90% of Americans consume caffeine regularly. This represents the major sustenance factor for the high consumption of energy drinks in North America. Moreover, with high-income levels and health consciousness, individuals seek active lifestyles, leading to increased interest in sports and other sorts of physical activities.
- As a result, key players capitalize on these marketing outlets to reach a broader consumer base. For instance, in 2021, Red Bull, an Austrian company mainly focused on energy drinks, started its newest world sports series, the FIM Hard Enduro World Championship, as a part of its sports-based marketing strategy. These marketing strategies are a success story of making a specific drink well-known, especially among young people.
- Furthermore, exposure to digital marketing enhances interest in energy drinks among young adults, especially the Gen Z population. Gen Z is attracting interest as the most recent generational cohort of consumers and encouraging leading players to adopt innovative strategies to keep up with evolving trends and retain their position in the market. For instance, in July 2023, C4 Energy, an American energy drink brand, partnered with WWE to roll out its new co-branded energy drink products. According to the company’s claims, this partnership is crucial for targeting Gen Z consumers, who seek authenticity from marketers and influencers.
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Energy Drink Industry Overview
The energy drink market is competitive, with international players enjoying the most significant fraction of total sales. Key players in the market include Red Bull, Monster Beverage Corporation, Eastroc Beverage, Suntory Holdings, and PepsiCo. Companies operating in the market are focusing on product personalization and convenience and providing healthy, zero-calorie, and low-sugar variants. Another critical strategy adopted by leading players is advertising through celebrity endorsements and sports event sponsorships. They are also emphasizing partnerships with domestic players to scale their production and into the huge potential for growth in developing regions.
Energy Drink Market Leaders
Red Bull GmbH
PepsiCo, Inc.
Monster Beverage Corporation
Eastroc Beverage
Suntory Holdings
*Disclaimer: Major Players sorted in no particular order
Energy Drink Market News
- March 2023: Red Bull launched its Summer Edition line with a new Juneberry flavor energy drink across the United Kingdom. The company claims that the Juneberry drinks are launched into major retailers nationwide and made available in single and multipack formats.
- October 2022: Red Bull strategically partnered with Keurig Dr. Pepper to distribute and sell its products across Mexico.
- September 2022: Coca-Cola Europacific Partners (CCEP) added two new flavors to its Monster line-up to attract a broader consumer base. Monster Reserve White Pineapple and Monster Reserve Watermelon were two flavors added to Monster's traditional energy drink range.
Energy Drink Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Shots
5.1.2 Drinks
5.2 Packaging Type
5.2.1 Bottles (PET/GLASS)
5.2.2 Cans
5.3 Distribution Channel
5.3.1 Supermarkets/Hypermarkets
5.3.2 Convenience Stores
5.3.3 Online Retail Stores
5.3.4 Other Distribution Channels
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 United Kingdom
5.4.2.2 Germany
5.4.2.3 Spain
5.4.2.4 France
5.4.2.5 Italy
5.4.2.6 Russia
5.4.2.7 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 South Africa
5.4.5.2 Saudi Arabia
5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Red Bull GmbH
6.3.2 PepsiCo Inc.
6.3.3 The Coca-Cola Company
6.3.4 Vital Pharmaceuticals Inc.
6.3.5 Suntory Holdings Limited
6.3.6 Monster Beverage Corporation
6.3.7 Eastroc Beverage (Group) Co. Ltd
6.3.8 Dali Foods Group Company Limited
6.3.9 Osotspa Public Company Limited
6.3.10 Living Essentials LLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Energy Drink Market Research FAQs
What is the study period of this market?
The Energy Drinks Market is studied from 2018 - 2028.
What is the growth rate of Energy Drinks Market?
The Energy Drinks Market is growing at a CAGR of 8.51% over the next 5 years.
Which region has highest growth rate in Energy Drinks Market?
South America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Energy Drinks Market?
North America holds highest share in 2022.
Who are the key players in Energy Drinks Market?
Red Bull GmbH, PepsiCo, Inc., Monster Beverage Corporation , Eastroc Beverage , Suntory Holdings are the major companies operating in Energy Drinks Market.
Energy Drink Industry Report
Statistics for the 2023 Energy Drinks market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Energy Drinks analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Energy Drinks Market Report Snapshots
